creating profitable localized assortments and space plans

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Creating Profitable Localized Assortments and Space Plans JDA Collaborative Category Management

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JDA Software delivers the transformational technology, best practices and expertise that suppliers need to excel in today’s consumer-centric world. The JDA Collaborative Category Management solution suite empowers category management professionals to move from manually intensive tasks to offering proactive, analytics-driven insights that collaboratively grow category sales and margins for both suppliers and retailers. The JDA Collaborative Category Management suite enables you to: ◾ Achieve and exceed sales plans at the store level ◾ Satisfy customer shopping experiences with targeted assortments ◾ Maximize scale and planner productivity through automation ◾ Support execution and compliance with mobility The industry’s most widely used space and category management solutions, JDA’s Collaborative Category Management suite delivers end-to-end capabilities and the tools that suppliers need to connect the entire category management process, supporting all stages of category management. ◾Capture and manage high volumes of shopper data from various sources ◾Analyze data and generate insights about shopper behaviors at macro and local markets ◾Develop localized, actionable assortment plans based on the insights Leverage mobility to enable: ◾Collaboration on assortments and planograms for store-level execution ◾Performance monitoring and feedback with field merchandising team

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Page 1: Creating Profitable Localized Assortments and Space Plans

Creating Profitable Localized Assortments and Space PlansJDA Collaborative Category Management

Page 2: Creating Profitable Localized Assortments and Space Plans

Current Consumer – Retail – Supplier Dynamics Prove ProblematicChallenges and Opportunities

Page 3: Creating Profitable Localized Assortments and Space Plans

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Sales Outlet Showroom Fulfillment Center

The Role of the Store in the Omni-Channel Journey Continues to Expand

Specialty

And Performance Expectations of Trading Partners are Increasing

Shelf Productivity Promotion Inventory Management

Page 4: Creating Profitable Localized Assortments and Space Plans

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

• Resets are on the rise• Thousands of POGs = 6 months to

produce• Retail data is vast and plentiful• Data volume is not manually consumable• Ability to extract value from data is limited

Retailers Move to Localization:Strain on Productivity / Precision

Page 5: Creating Profitable Localized Assortments and Space Plans

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

What Value do Retailers Seek from their Trading Partners?

• Happy Customers• Category Growth• Effective Local Assortments• Shelf Productivity• Store Compliance• Value-Add Partnerships

Page 6: Creating Profitable Localized Assortments and Space Plans

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Yet, Brand Loyalty and Experiences on the Decline

2010 33%Source: Deloitte

“Must Have” Brands

2012 29%

88%

Source: Deloitte

Move to Private Label?

27%Moving Back to Brand?

15%Source: IPG Media Labs

Store shopper satisfaction is declining

per year

Page 7: Creating Profitable Localized Assortments and Space Plans

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Manufacturers Turn to Choice:SKU Counts are Increasing

Number of SKUs in Grocery grew

50%between 2003 and

2010.

Source: Food Marketing Institute

Page 8: Creating Profitable Localized Assortments and Space Plans

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Category Managers Struggle to “Do It All”

“My sales are flat, and I’m starting to lose shelf space.”

“I can’t meet my reset deadlines.”“Regardless of how many new people I

hire, there’s only so many planograms I can produce.”

“My business plan isn’t convincing without meaningful insights.”

“How can I demonstrate better value to my retailer?”

“My sales are flat, and I’m starting to lose shelf space.”

“I can’t meet my reset deadlines.”“Regardless of how many new people I

hire, there’s only so many planograms I can produce.”

“My business plan isn’t convincing without meaningful insights.”

“How can I demonstrate better value to my retailer?”

Page 9: Creating Profitable Localized Assortments and Space Plans

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Making the Category Management Leap

Planogram Development

Gut-Feel Decisions

Fixed Resets

“Contributor” Status

Dynamic Adjustments

Proactive Insights

Analytics-Driven Decisions

“Collaborator” / “Trusted Advisor”

Laggard Leader

Page 10: Creating Profitable Localized Assortments and Space Plans

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

• Aligned Business Goals• Integrated and Automated

Tools• Deep Analytics• Reliable Performance

Measurement• Interactive, Corporate-to-

Field Collaboration

What Do Category Managers Need to Have?

Page 11: Creating Profitable Localized Assortments and Space Plans

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

JDA Collaborative Category Management

Creating Profitable Growth with Localized Assortments

Empowering category management professionals to move from manually intensive tasks to proactive, analytics-driven insights that grow category sales and margins for both suppliers and retailers

Mobility and TaskManagement

Automation and Workflow

Planogram Precision & Volume

Consumer Insights& Analytics

EXECUTION

CollaborativeCategory

Management

PLANNING

EXECUTION

Access & DeliveryJDA Cloud

Business AgilitySustainable ROI

Upgrade & Optimization

Process & PeopleStrategy and ProcessOrganizational DesignChange Leadership

Continuous Improvement

Assortment

Page 12: Creating Profitable Localized Assortments and Space Plans

JDA Collaborative Category Management• Localizing Assortments and Plans• Maximizing Sales and Optimizing Space• Creating Trading Partner Value• Driving Profit

Page 13: Creating Profitable Localized Assortments and Space Plans

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Problems Solved:Insightful Assortments

Offers Aligned with Local Shopper PreferencesImproved Turns and Sales per Sq Ft.

Improved Customer ExperiencePrecise Space Allocation

AFTER JDA CollaborativeCategory Management

Variety Mismatched w/ Local PreferencesAssortment Never Aligned with

Space StrategyPlan Profitability Was Always

QuestionableOne-Size-Fits-All Assortment

BEFORE JDA CollaborativeCategory Management

Inventory Waste | Unfulfilled Shopping Higher Sell-Through | Winning Experiences

Experienced double-digit percent sales increases

Page 14: Creating Profitable Localized Assortments and Space Plans

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Problems Solved:Localization

Non-productive Space, Missed SalesCategory Manager Productivity Drain

Makeshift, In-Store EditsPoor Compliance to Plan

Unsatisfied Shoppers

BEFORE JDA Collaborative Category Management

Fitted to Local Store Fixture and Sales GoalIncreased Shelf Productivity

Higher Productivity by AutomationBetter Compliance to PlanMuch Happier Shoppers

AFTER JDA CollaborativeCategory Management

Limited Space Productivity | Store Strategy Misalignment Customer Satisfaction | Higher Sales Growth and Turns

Experienced 4pts of growth overtraditional cluster POG

Page 15: Creating Profitable Localized Assortments and Space Plans

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Problems Solved:Mobility

Planograms Integrated with TaskInteractive Field Collaboration

Improved ComplianceChain-wide Visibility

Mobile Execution

AFTER JDA CollaborativeCategory Management

Unreliable Plan to Field CollaborationLimited Visibility to Execution

Sporadic ComplianceAd-Hoc Field Feedback

Reliance on Paper POGs

BEFORE JDA CollaborativeCategory Management

Underutilized Space | Missed Opportunities | Bad Experiences Productivity | Maximized Revenue | Better Experiences

Page 16: Creating Profitable Localized Assortments and Space Plans

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

JDA Collaborative Category Management Suite

Provides end-to-end category management capabilities delivering sales growth through collaboration and planning, empowered with consumer

insights and advanced automation.

High Sales per Square Foot / Meter • Scalability through Automation

ONLY

“Better identification of product assortment for each point of sale has helped us

increase sales and customer satisfaction.”

Roberto FranciChief Operating Officer,

Conad Del Tirreno

Page 17: Creating Profitable Localized Assortments and Space Plans

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Collaboration, alignment, visibility, monitoringIncreased consumer relevance (customer loyalty)

Supply chain efficiency and stock turnA higher return on space

Business efficiency via reduction in operational costsIncreased sales and profitability

Overall improvement in bottom line contribution

JDA Localized Assortments

Optimal Utilization of Inventory & Space

Page 18: Creating Profitable Localized Assortments and Space Plans

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Collaborative Category Management

Consumer Insights & Analytics

Targeted Assortments

Localized Planogram

Automation & Workflow

Mobility & Task Management

ONLY

Precision • Monitoring • Growth

Happy CustomersHappy Retailers

Profitability

Page 19: Creating Profitable Localized Assortments and Space Plans

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

Guided by the Industry’s Most Experienced Professionals

400+

1,300+

Retailers

Manufacturers

Image courtesy: alpha

300,000+Stores

Page 20: Creating Profitable Localized Assortments and Space Plans

Copyright 2014 JDA Software Group, Inc. - CONFIDENTIAL

http://www.jda.com/solutions/collaborative-category-management/

Discover More about JDA Collaborative Category Management